How To Build Wealth With Infinite Banking With Patrick Donohoe
Welcome back to the Mike Dillard, podcast entre preneurs, like you get the knowledge and skills that you need to bring your dreams to life. Well, gang today. We're gonna talk about one of my favorite investment strategies for entre preneurs now as your business, and your wealth start to grow going to realize at some point that making money is actually easier than keeping money. Why is that it's because the habits mindset and behaviors that allowed you to make that money like taking risks are the exact opposite of what you need to keep and grow it. And what's really interesting is that entre preneurs tend to think that investing is the same thing as saving they think that taking that extra fifty thousand you have here that extra hundred thousand you have there and investing that into other companies or startups is going to somehow magnify your wealth. And while there is a chance for that. I can tell you from experience that that's rarely the case even though it might feel like a similar activity. So what can you do to in? Sure that you don't take unnecessary risks. And that you're setting yourself up to achieve your final one true goal, which is financial freedom. While the first is to become aware of this trap to begin with and second is to invest your money in ways that will protect and grow that money conservatively out right now, we are overdue for a stock market crash. We are in the middle of the longest bull run in history and were hitting new all-time highs on the market, which means one thing a crash is on the way, it might take place and a few months or a few years, but every single day that goes by brings it one step closer, the good news. Is that right now, you have a chance to do something about it and to protect your wealth. Which is exactly what my guest here today. Mr. Patrick Donahoe, an IRA going to teach you how to do what we're gonna show you is an investment strategy that has the power to completely change your life, in my opinion. It is tailor-made for entrepreneurs. It's going to help protect you against those habits. And risk taking tendencies that are a part of your DNA. So please pay attention take some notes, and please help me. Welcome Mr. Patrick Donahoe. My good friend, Mr. Patrick Donahoe. Welcome to the podcast. Hey, what's up, Mike? It's awesome to be here. Yeah. Yeah. It's been a long overdue, and we've got a few people who are listening to this who might know your name, and who might recognize you. And that's from the fact that you did one of our amazing classes or the Mike Dillard dot com platform, formerly self-made, man. But you've got one of the best classes on there when it comes to investing and wealth, protection and wealth production when it comes to the infinite banking strategy, and you and I have known each other all the way back since the elevator group days, so two thousand ten ish two thousand eleven and you've been just an amazing expert when it comes to this specific strategy, which I want to help introduce everybody to who's listening to this episode. And I can't think about anyone better to help me do that. So thanks for joining us now. It's my it's my pleasure. Yeah. It's been awesome to follow you Mike in in. What you've done since the elevator group days. You're always on on top of all the entrepreneurial trends, and mindset, and it's awesome. Just to see how you've developed and grown over the years. I consider you a mentor and appreciative of all the stuff all content you put out there. And what you're doing for other entrepreneurs and small business owners. Thank you, brother. Appreciate that. So, you know, one of the big challenges that every entrepreneur is going to face once they start making money is figuring out what they're going to do with that money. Besides by the lambo in the fraud deal. Right. So we got introduced to this strategy after the market crash of two thousand eight and that's why started the elevator group way back. Then I was like I need to figure out the investing side and the money side of life, and whatever was working before two thousand eight is really no longer relevant. The world had definitely changed. I was looking to figure out what to do with the money. My business was making that the rich were using essentially, what were the strategies that the rich reusing with their money and not the retail financial markets that are traditionally talked about with four one ks IRA's, mutual funds and all of that stuff. And this is one of the strategies that I came across that was absolutely amazing, especially for entre preneurs because of the benefits that it provides an obviously have you go through that. But if you could take us through your story for a little bit, and how you got involved in this world because I remember when we first met. You're you're working from home. And today, you've got a massive office with tons of agents and brokers, and you guys have just really blown up. It's one of those. It's one of those journeys, which I think is familiar to most entrepreneurs entre preneurs, you read a book, it changes, your mindset, and you know, there you go off on a course, you never end -ticipant. It's that was me. I was I was doing an internship at the Hartford, Connecticut public school system, and my buddy gave me rich, dad. Poor dad inside found myself reading that in the lunchroom of this board of education teaching jobs. That's the path I wanted to pursue. It's what my parents did. And it changed everything for me. I I had a new context for for life. I graduated. Appease, my parents, and my my my grandfather pass on that left money for for school for me. So I finished with a degree in economics. But I always had this. I had this entrepreneur bug. There was like planted in my in my soul. So I was searching searching for business. I got. Into two sales worked in a call center, dead consolidation company. But when I when I graduated I did not want to go down the typical path. And and so I saw it out mentors. I read a ton Redway that ever read in school, you know, and it brought me to this point where I met Robert kiyosaki author rich that port at his original financial planner named Kim Butler. And she's the one that taught me about this financial financial concept, and since then it's been incredible. I mean, I started a business. I think you knew this, but one of your former guests gara- white, so he was original business partners and started started with a couple others as well. And in the, you know, the whole financial crisis white wiped us out. And then is where I really started to see the power of what I had discovered because you had successful business owners and entrepreneurs that had achieved these high. Levels of success, and they were wiped out by their investments or or heavily affected by their investments and the lack of performance of their investments. And so that's where I kind of made the connection between you know, what this this strategy is. And how Dacian all it is for all small business owners or entrepreneurs because it helps mitigate the right of an entrepreneurial journey. Yeah. No. Without a doubt. I mean, I've been personally using this for a decade now, and we'll get into all the all the benefits and reasons why you and I are both big fans of this. And let's just start from the top. You know, it goes strategy goes by couple of names seven seventy account infinite banking cashflow banking, but walk us through with this is all about it's a strategy. That's been around for a long time. And it goes by different names because nobody really wants to call it. What it really is. I'd seems like because it has a has a stigma, but it's it's dividend paying whole life. So it's an insurance. Policy, but it set it set up to comply with an IRS ruling. And it was the only time the insurance was regulated from tax perspective. But with the IRS did is they limited the amount of money, you can put into insurance, and and it was because of how incredible the tax benefits are. So that was in the late eighties hasn't changed since. But the idea of infinite banking or cash flow banking is some of the features that the policy has which is unlike other financial products were it's kinda like it. It is a savings account. It has tax benefits associated with it. But one of the provisions bid is incredible is a guaranteed line of credit. So the insurance company were you store? Your cash store your savings. They're gonna pay you interest. They're going to pay you a dividend. But they allow you to borrow from them against the value of your of your savings of your cat. Cash and so the idea of infant Banking's that these loans are, you know, they're not collateralized by anything other than the actual underlying policy, and you can use it for literally anything, you know. And then also the provision of paying back. The terms are incredibly flexible, it's an interest only, and they Bill you interest once a year, and you can defer into future years. So it's a product that's perfect especially for the entrepreneur entrepreneur life because it allows for you know, like a forced savings, right? You're putting money away every single month or every single year. But then when you want to use your cash you essentially use the loan provisions to fund the marketing campaign, hire employees, join a mastermind group, and then there's this built in discipline or accountability of paying it back over the course of time you based on what you've invested. So let me give let me give everybody. My. Fifty thousand foot overview of this. And why I think it's so important. One of the first podcast we ever did three or four years ago. Now is with Mark Ford. If you haven't heard that episode, go back and listen to it Mark is one of my mentors. He's one of the most successful direct response marketers in history. He's one of the partners of Stanbury research and was order stands, berries mentor, and I had a chance to go sit down and record a lesson with Mark many many years ago, and then I had him on the podcast. And he said something that I'll never forget he said, Mike the way in entrepreneur builds wealth and gets rich is through their business. It's by making money through sales and revenue when it comes to keeping money your priority. From an investment standpoint is to not take any risks with that. And that was a really big mindshift for me. Because when you grow up, you know, as I did with two very hard working parents and kind of the upper middle class if you will they're only hope. Of becoming wealthier financially free was to take risks with the money that they made from their salaries. Right. And so that's how the middle class gets wealthy. But from an entrepreneur's perspective. We get wealthy through business. And the investing side is actually where things can blow up because if we apply our risk taking nature to the investment world, it usually ends poorly. And so I watched you know, my parents and a whole generation lose half of their wealth when the market crashed in eight, and I was like okay when I'm not going to do now. But what can I do with my money moving forward that takes into an event like that that takes an event like that into account and one of my first priorities was to take marks advice into account as well. And it's like, okay. Well, I'm making a lot of money with my business. I need to invest it. I need to do something with it or it's just going to get eaten away by inflation. What can I invested in? That has a good measure. Of return, but that's not going to be affected by stock market crash. And the reason I wanted to bring Patrick on right now is because we're overdue for a stock market crash. This is the longest bull run and US stock market history or hitting new all-time highs, and those are big giant red flags that were in a bubble that could pop it any moment. Now, it could be this year. It could be next year two years from now whatever may be, but it's certainly closer to us today than it was a few years ago. And so now it's time to start thinking about that and being really smart with your money. And as I did my research, this infinite banking strategy is one of the top methodologies are strategies that I found that provided a whole host of benefits that I couldn't find anywhere else in. So I'm gonna Patrick I'm gonna have you go through a few of these in expand on what I'm about to share, but an infinite banking policies. Patrick, sad is a whole life insurance policy that structured in a very specific way. This is not. Something that you go to call up your life insurance agent and say, hey, when a whole life policy, that's not what this is. You wanna work with someone who specializes in strategy like Patrick if you're going to use it. But the bottom line is that it's Crashproof so all of the money that you're putting into this account. You're probably making three five six seven percent interest a year on it. Which is a nice steady return. It's not the best in the world. But it's definitely better than a Bank account savings account. That's pain you point two five percent interest per year. And the good news is that when the stock market does crash the money in your count doesn't move doesn't go down. In fact, usually return start to go up at that point. And the next really big benefit to this is that you can use it in a specific way to retire tax free. Meaning that if you're putting money into this policy for twenty thirty years grows into a nice big pile of cash whenever you decide to retire. And this is up to you could be at. Fifty five could be at sixty five whenever you can start to pull this money out of your account completely tax free. And that's another reason that Tom Wheelwright likes this strategy as well, it's a part of building tax-free wealth, so Patrick that's kinda my fifty thousand foot overview on this take us through it in a more detailed level. Well, I'll reiterate a couple of points and then get into the details. This is it's interesting to me that there's this mindset out there that wealth is created by something out outside of you. And with Mark Mark Ford's books, whether Tim writing or Michael Masterson, his his pen name. It is a common theme throughout all of them. Is that you're you're you're greatest investment your greatest asset? And that's where wealth is going to occur. But it's interesting to see the individuals try to use real estate or trading or markets to build their wealth as opposed to investing. Themselves and building business become more valuable. So this going into the actual product itself in in the strategy. I would say it magnifies that idea because what it does is it protects mindset because the greatest tool that an entrepreneur has their mind is their ability to think they're building to be creative in doing whatever it takes to have your mind in the best place because that's where the ideas are going to come from that will make you wealthy. So the idea associated with infinite banking right in this insurance policies that it has a hundred years of track record never never losing. And there's been dividends paid out the route each of those hundred years now, this isn't a product that's gonna make you wealthy it. However, would it does is it gives you a better return than most long-term investments of better return than savings accounts for short term investments, but also gives you access to that money through. Through the the loan provisions. So the growth of the growth of this asset is is tax is tax free. You're not paying any income tax on it. You're not paying the capital gains tax on it. It's also private doesn't exist on any public record. And it's also protected from creditors in most states and also protected in the event of a divorce a as it's not typically used as a NASA that is distributed in the in the divorce decree. So there's there's so many of those types of benefits that protect mindset associated with worst case scenario, you're not gonna lose any money. You're going to get a return is oftentimes better than the long term return. There was a is interesting couple days ago. I got this inquiry by by this financial publication company, and they had done this analysis of the SNP the standard and Poor's five hundred and the risk adjusted return. And so what that means is that the amount of. Risky have to take to get the long-term return. The SNP is gonna give you a is really high. And then they, you know, we essentially did a very similar risk adjustment model to infant banking the returns that this dividend paying life insurance will produce and it's like hundreds of times better from a risk standpoint. Meaning the return you get for the amount of risk. That's taken his astronaut, Michael it's one of the best. That's that's out there. But it's again going to the point of you have this certainty associated with what you're going to get. You're guaranteed a line of credit. You're guaranteed. A return? You have privacy. You have creditor protection and in. So that I also believe that with an entrepreneur, you know, they they make money they make good money and some years, they have kind of bows correction years themselves and the ability to continue to save and to continue to stock away your war chest, I think is important because. You know, in in the end, you know, if you have a million dollars, it's in your reserve versus one hundred dollars in your reserve, and you're trying to make a business where think about how that affects mindset. And so looking at where you store your reserves where you store your cash is really important to ensure that it's a it's a place that you can count on a place to gives you that feeling of certainty. But it also say Mike this is and this is me, you know, with with kids with a family with business partners. You know, you you want to have that kind of insurance or safety net as well. So it gives you, you know, like critical critical and chronic illness protection, there's a death benefit in the event, you know, that does something drastic happens. And you're able to have that as, you know, essentially, a tool to pay off your debts to settle on a state to provide for the wellbeing of your of your kids or your spouse see of all those benefits attached to it as well. What's amazing is it's all within one strategy and one one. Product. And as you mentioned, you just don't you can't find it in anything else will the other any other products? You just think about it think about what you just shared versus investing in the stock market. We have none at one thing advantages. Will you don't even get you get the chance at capital appreciation the chance at that. And also in equal chance of losing that and then you get taxes, and then you get exposure to creditors and to lawsuits and two divorces. You don't get anything compared to compared to the strategy. And that's why I'm hoping people are starting to like have a light bulb go off and be like holy shit. Okay. I really need to pay attention to what's being said here. So walk us through a traditional return on an annual basis. And again, this is this is adjusted based on how the insurance company is investing the principal and making a return back on it. But the nice part again is that there's a essentially Garrett. T- of no loss. You might make one percent a year you might make five percent a year. But you're you're not going to go into the negative. But what what on average should be expected? It's interesting because it relates to the kind of research, I did a few few days ago based on the whole risk adjusted return example, I just gave and the the average returns of these mutual companies dividends that they pay out has average over the twenty twenty years about six and a half six and a half percent. And you you look at how that's broken down though. And that's what's interesting. So there is there's a guaranteed. There's a guaranteed credit that guaranteed credit is typically assessed that four four percent. It's actually going down to three and a half percent or new policies starting believe next year. And then it these companies that offer this type of product, they are called mutual companies mutual companies are not publicly traded. They are owned kind of like a credit union their own owned by those that own this type of insurance policy and so their profits at the end of the year, which comes from their invest. That's which comes from just the other types of insurance that they sell they essentially take those profits and distribute those on a pro rata basis across all the all the policies. And so what happens is, you know, every every single year, you have that assured either you're going to get you know, the four percent guarantee, and then there's a dividend paid on top of that. Now, these are these are gross returns on I wanna get into you know, how insurance companies do this. But they have kind of a an adjustment based on your age and your health rating and so forth which nets out at around probably four four four and a half percent. If you're over fifty in about five percent right now, if you're you're under that, and this is some of the lowest dividend periods of time, just because of how low interest rates have been in also just given longevity. And that's why they're adjusting some of the way the ways they do the math because people are living longer. Go back to the only reason why we know about the Rockefeller's having whole life and having insurance as a foundation of their entire family office, and their their financial strategy is because back in the day, John D, raw Rockefellers policy actually paid out before he died because there's this period of time that you're covered up to. And it was I believe eighty at the time today, it's a hundred and twenty one years old because it's just that over the course of time just because of the increase in longevity. Now, it's actually going up even higher, and so they're they're always a justifying adjusting for that. But nonetheless, it's these are companies that know what they're doing. They're professional investors. They're professionals at assessing risk and they've been profitable for a really really long time. There's really smart people behind behind the wheel or at the helm. And and they're they're not trying to rate these huge wins. They're trying to get that five. Six seven percent. Cent per year for you know, forever. And that's why they've been so successful because they have a tried and true investment methodology. And you, and I and whoever owns these type of policies gets to gets the benefit from it you so let's talk a little bit about the the loan mechanism because that's one of the most attractive features of the strategy as well. And there's two there's two ways that most people use it so one we used to refer to it as a bullet fund. So let's say you accumulate two hundred fifty thousand dollars in cash value into this policy, and you want to buy a house. So traditionally have to go out, and you'd have to apply for mortgage and go through this God awful process. These days that can take weeks and weeks of time, and that are incredibly invasive ultimately to pay Bank a bunch of interest. Well with this strategy, you can take a loan out against that cash value in your policy. Let's just say two hundred thousand dollars. And use that cash to then go buy your house, and Patrick the what is the the payback interest rate. Usually what is it? One percent. Two percent. Yeah. That's the that's the delta. Right. So the difference between what you're what you're earning. And what you're what you're paying? So right now, it depends on depends on age and so forth. But it's it's it's about par. So if you look at the interest, you're paying back it's going to be around that four and three quarters of five percent level. And and that's interest that goes to the insurance company. Remember, it's it's them loaning use their money, right? Because your your money is is with them, of course. Right. But it's it's not necessarily touch when you take a loan gay. They lend you their other money from their other assets there other cash there, you know, other activities, and you're essentially paying them back and that provides profit to them at the same time you have to. Out where profit is distributed. Right. And that is where it's distributed to those who own policies in the form of a dividend because it wouldn't be fair right because of their lending money at zero and they're not earning any money off of it than those that don't have loans are going to be negatively impacted. So that's why they charge an interest rate associated with their loans because that's money that they could have invested and earned interest on that would have benefited your dividend and benefited you're in, you know, from an interest perspective so the loan, right? It still, you know, as far as the interest rate is concerned incr- at incredibly low interest rate a and three quarters right now two to five percent, and it, but if you really assess the characteristics of the loan like you mentioned, Mike, it's like you go to a Bank and try to get a mortgage. And you know, it's a it's a thirty day forty five days sixty day process. Sometimes these are loans that you can get essentially an in a day. And there's no no necessity to actually explain what you're using it for either rights, basically, do you have the money? Yes. Okay. Where do you want it where do you want it sent? So let me let me go over this real quick for people again. And let's say you've got two hundred fifty thousand dollars in cash value in this policy, and you wanna take out a loan for two hundred of that to go by house. So that two and fifty thousand dollars is still in your account. Right. It's still earning five six percent. A year return the banks going to give you that two hundred grand. That's essentially secured against your two hundred fifteen calf. That's why they're happy to give it to you. And they don't care what you're using it for because, you know, Hugh, ever default on it, and they're just gonna take it out of your cash balance. Exactly. So they're gonna give you that two hundred grand in a day or two, and then you're going to pay them interest back. Let's say four percent, right. So you're making five to six percent or two hundred fifty K. You've got your alone that your you've now about your. House with and now you're paying about four percents or you're still making a positive arbitrage of two percent on your money. If you were to have taken two hundred thousand dollars out of your savings account and giving that to a Bank to go by that house. Now, you're still paying them for two five percent interest. But that two hundred thousand gone, it's no longer in your account. You're not making interest on that. If maybe it was in your e trade account. Maybe it was in your four one K, whatever it may be you had to extract that money. You can't take it out in the form of alone. So you get to have your cake and eat a to which is which is really neat here. Now, let's talk about how it's really really interesting and really lucrative when it comes to retirement. Let's say you're in your sixties, and you've got a million dollars in cash value in that policy now, and you want to quit work. You don't wanna work anymore. What can you do in that circumstance? Well, that's what's what's incredible. Is that they're the only tax legislation. The tax issue associated with the policy is is based on how much you. Fund, relative to the actual coverage amount, and that money grows, and there's no issue with the tax as far as taking out in when you can take it out, and how much you can take out because it all comes out tax free. So how it how it works grows over the course of time gay it's not correlated to the market, it's growing tax free. And then at the time when you decide to retire. You can annuity is it which means you can have a steady stream of income. That's it's paid out at an equal amount over the course of time, you can take uneven distributions as well and supplement your other income streams. But like like, I mentioned and like you mentioned Mike it comes out a tax free. Now, there's a a slight issue associate with how you do it because up to that point. A we teach individuals to use the loan provisions K take out a loan. Then you pay it back than take out another loan pay it back. When you go to retirement instead of taking a loan. You actually take a withdrawal you actually, withdraw cash value, and that money comes out tax free until you hit what's called your basis, which is the amount of money you've put into the policy up to that point. Once you hit your basis if you were to continue to make a withdrawal, it would be taxed at ordinary income levels. However that is when you switch to taking a loan only take a loan again. There's no tax on it. This is the point time where there's no there's no tax because it's it's alone. And you're not going to be paying it back either. So it's going to be somewhat different than previous. But insurance companies what they've done is. They've built in this idea that when you start to take those loans it's going to be a tax free tax free event. You're not even reporting any of that money on your tax return will be liability. Yeah, it so it's a it's a alive. Ability in an insurance company is also, you know, depending on where dividends or at you'll you'll never have a loan interest rate is higher than the actual crediting rate. Right. So therefore, you're never gonna get, you know, this this event where you're earning less than you're paying on the interest of loans. That's where allows you to be tax free indefinitely. Now, obviously, you know, it depends on how much cash you have. But there's also a strategy in which you can use it not necessarily as an annuity is steady stream of income, but you can preserve some of it for your legacy as most people at that point in their life. You know, we'll have their home paid off Bill have other property paid off. And they're they're intending on using that to to pass onto the next generation. But if you look at the efficiency there, there isn't much, and that's where their strategies where you can use a reverse mortgage their strategies to be able to to leverage those other ask. Sets and then dedicate the policies or policies as the vehicles that will actually pay out to the next generation. So it really depends on where you're at that point in life. It's just really it's just a really cool strategy. So especially for preneurs. This is something that I like to think of as like, the alternate supercharge saving strategy again to be really really conservative to start socking money away every single month automatically, you can decide however much you want to contribute. It could be a thousand a month. It could be ten thousand dollars a month. And and just start building up this really secure steak, and guess what? The next time the stock market crashes. You don't care like your your savings is not going anywhere. It's not going down. You don't have all of this money exposed to the market. And so you're not freaking out. You're not jumping out of buildings like people were during the last crash literally and fern happens during that during those crashes when everyone. It is when everyone's trying to get out when everyone is in survival mode that that's when those that are in the know gate, real investors. That's when it's there their heyday, and they have cash to actually capitalize on those opportunities. And I you know, I look at the next the next crash because we always have corrections. And we're and we're do for when we've been two for one for a while. But at that period of time there's this psychology and again going back to what we've been saying since the beginning. It's it's about mindset entrepreneurs. Right. They use their mindset to create opportunities. But some of the greatest opportunities are when everything's going to go into shit. And that's where I look at, you know, having cash having the ability to access money allows you to have a even keel type of mindset to be able to capitalize on buying businesses or buying distressed assets. Because people that did that, you know in two thousand nine and two thousand ten like crushed it. Yeah. I mean, I'm waiting right? Like I saw. Last week depending upon when this came out, but but recently Alon must came out into his soul. Three and a half hour. Live broadcast on Tesla's. An automated driving program and robot taxis and all of that stuff. That's coming in the next year. Right. And so I'm like, oh, they're going to literally put Uber lift out of business in a day. And I am like super excited about investing Tesla's, doc right now, but I'm not going to until the market crashes 'cause I'm gonna wait until there's blood in the streets, and I can by a forty to fifty percent discount than it is today. And so that's how you have to think about it. And I have to say, you know, this is I've lived through this three times now. So I've really learned the lesson in a big way over the last decade. It started with the market crash. No eight okay. There was a really big lesson that I could learn from observing what happened other people, and then especially through crypto, you know, being involved in crypto since twenty thirteen now I've lived through two to three crypto bubbles, and I'm trying my best to educate people in my audience that hey when the market is down, and it's crashed. That's when it's time to start buying. So that's what I've been doing the past few months is averaging into crypto positions that I have. And when the market goes back up into its next bubble. Unfortunately, the average person's going to buy in when it's twenty thirty forty fifty thousand dollars of bitcoin, and I'm going to be selling at that point. So. I think you've got to live through this a couple of times before you really appreciate it. But that's the opportunity that you're going to have here in a and again at the next one to three years when the market crashes, so I'd be building up your bullet fund be building up cash value in a policy like this. And when the market does crash boom pull out some money put it in the market. You can put it in a nice easy index fund at that point because you're buying up fifty potentially plus discount, and you're going to double up on your returns for the next ten years after that, you know, Mike, I heard there's a financial conference. I went to a few few months ago, and one of the speakers has his punted fifty billion dollar hedge fund, and he, you know, he wrote a book about the psychology of cycles businesslike goals and market cycles and just fascinating and some of the questions from the audience because obviously if you're in that environment like you think rationally you're not thinking emotionally, but in the actual environment itself, you know, that's all the emotions fire like part of our biology. And he was the questions from the crowd were will don't people know that don't people know like when the market crashes that that's when they should buy like, and he's like, no, even like the most sophisticated investors will not buy when things are like that. And he this specific I bought a bunch of debt clutter is dead obligations. Cd Ohs, right, right? When they are at the bottom when there was no market, but he started buying then which took a lot of balls Abe at the same time. Again. It's it's the whole right now, you can prepare yourself psychologically to understand that. When those things happen having cash right allows you to capitalize on opportunities. Just don't really exist right now. So yeah, just remember this. If he want to end up in the one percent, you have to do the opposite of the ninety nine percent, right. So that's an it's having the the mental maturity the emotional maturity and the experience in the wisdom to do that. And it is very difficult. Because you're going against human nature when human nature sees a crowd of ninety nine people running and screaming away from something. It takes a very special individual to look at what they're running away from into run towards it. And that's exactly what's happening when the market crashes or win a bubble happens or things like that. Right. So that's all you really need to know is where is the overall market sentiment? What are ninety nine percent of people doing if they're putting money into the stock market. If it's hitting new all-time highs. The now it's time to be the one percent and to start to do the opposite. Maybe you're going to get ready to short the market. Maybe you're gonna start accumulating cash. Maybe you're going to sell off your stock into cash, and then you're gonna wait for that market to collapse. Everybody else is going to be selling at the bottom. And that's when you're going to be buying, you know, buying when when bitcoin bottom if you're a few months ago at three grand I was buying. I've almost doubled my money in three three months. So yeah, I don't know what else. Mike. This is this the sign remember, you know, when when bitcoin was, you know, eighteen eighteen thousand dollars we had we have people that were mortgaging their homes and going all in on bitcoin because they needed to double their money or else they wouldn't be able to retire that was that was the sentiment. So obviously, we all know what happened after that. But that's where you know, you gotta pay attention to what the new collective psychology is. And what's what's going on? That's where all the opportunity is. But as you said, it's not the ninety nine percent, right. That's not follow those sentiments in that psychology. It's the it's the one percent psychology. Which is you know, the diametrically opposed to the majority will let's talk real quick in the time. We have left about what to what to look for in the difference between these policies, right? Like, I said at the very beginning. This is not something recall up. Your your neighborhood whole life insurance insurance agents a-a-a one whole life policy is has to be structured in a certain way. Let's talk about McCain, and what that is involved. With and all of that good stuff. And why someone needs to call an individual like you who specializes in the strategy will I would I would I say the objective of the policy in this context? Right. If you're if you're older, and you have established assets in your you're on the brink of retirement, it might be slightly different. But I'm I'm speaking to those who are entrepreneurs small business owners of building wealth establishing themselves or trying to get to the next level. But it's essentially to set the policy up with the maximum amount of cash and the least amount of coverage. And that's that ratio is referring to before. Which is the IRS rule. It's ruled seven seven oh to if you want to try to interpret that in the IRS website. But the the idea is to stay at that limit and not go above it. Because that's when the tax benefits change and they're not as favorable. And so the idea is number one insuring that the policy complies with that rule. The second is used. Strong mutual companies mutual companies are private they're not public companies. They don't have to appease shareholders. Hey, they can make the right decisions at the right time. And typically these are companies that are not trying to swing for the fences. These companies that have been around forever because they have tried and true investment theory methodology, and so it's using the mass Mutual's or the New York. Life's those are these really incredibly strong companies that have just had paid strong dividends for well. Over a hundred years, you know, using using advisors that understand this is important because the illustrations you get from these are incredibly complicated, and they'll confuse you, and you end up just relying on the individual and trusting them that they know what they're doing. And in my experience, there's very few people that are out there that really understand this concept because one of the main things associated with this whole compliance is we essentially put on the altar. A lot of compensation eight for setting the policies up the right way because most visors out there will set it up or maximum compensation gay. This is to set it up for maximum cash with minimum coverage gate, which essentially reduces that for us. And so that's why you wanna use a firm that really specializes in this and advocates it and doesn't just do it kind of like on the side. They do as their bread and butter. Yeah. Exactly. So who is this a good fit for how much money? Do you? Do you need to get started like paint a picture on who should call you? And reach out to you. If this is something they wanna learn more about what I'll I say. It's not it's not for everyone. Right. This is a it's a strategy that you have to commit some level disciplined too. And actually put money aside save it on a consistent basis. But also, you know, payback loans when you when you use them for business, personal purposes or personal purposes in so that's those are the first two things to really be aware of. When you get past that, you know, it's really is it right for the person who's drowning in in consumer debt. Probably not that's an indication of just, you know, not not necessarily the greatest the greatest discipline. Now, not to say that that it won't work. But it's just an indication that, you know, obviously, getting rid of debt would probably more important than actually doing doing this. But I would say for those that are saving money, you know, minimums, depending on age mean, I have policies on my on my kids, the that are in the hundred hundred fifty dollar a month range, but you know, you can do seven figures per figures per year. So there's a wide range of contribution capacity because that's not regulated the amount that you put in isn't regulate you can put in as as much as you have. So the idea is number one. It'd be really understand the discipline factor associated with it. You're gonna wanna be in this for at least seven seven years. That's the point at which policies are typically. Self sufficient and don't require any future contributions. Hey, but I would say for those that have a degree of discipline. This is it's a great fit for them offer person. It's holding cash also a very good Brig fit. I would say entrepreneurs that are business owners small business owners meeting business owners, they understand the value of capital in need it to capitalize on opportunities from a business perspective. It's it's right for them as as well. However, you know, you're going to have to most likely take money out of Bank accounts, take money out of markets. There's gonna be some adjustment to to your financial strategy. And so depending on the the individual, and if they aligned with the philosophy that they're number one asset this could be an amazing addition to your financial life and completely changed. The course of of your business, even though it's not going to be in like I said in the beginning. It doesn't make you wealthy the same time, you know, based on. Where you're putting money the access to that money in the minds at that creates. It's incredible. You know, just that slight tweak, and how beneficial that can be to a business again here we're talking to entrepeneurship you're going to you're going to become wealthy through your business. This is a way to preserve. That's what that's what this is all about. It's it's not giving exposure to the stock market. It's not doing anything risky with it. You know, I'd say if you've got ten thousand dollars a month, or let's just say thousand dollars a month that you would allocate to an investment take twenty twenty five percent of that thirty three percent of that and put it into this and just make this your super secure nest egg. That will always be there for you in good times and bad, and it just becomes your your security your skirt setup for your financial independence. So awesome. Brother. Well, where can folks go meet you? And by the way, I'm gonna plug the class. We did because I think that's where everybody should start. If you wanna learn more about this in. Jump in and watch myself in Patrick walk walk through what we we just kind of tell you about him, but in much more detail on a whiteboard. Go to mypillow dot com and look for the class, that's titled how to build your wealth with infinite banking with Patrick Donahoe, right guys. You can go pick that up for five dollars today. It is gosh, probably one to two hours long, and we're going to do this over again for you on a whiteboard and much more details if you can get a real full understanding of that ideal for five dollars to you. It should be a lot more than that. But we're doing a little marketing experiment right now. So you can pick it up for just five bucks here. Mike what I'll what I'll do is give you because you graciously did a blurb for the book came out with last last year and all give a PDF version as well as the audiobook, and we can you'll put it in that put in. That course, if you think out valuable to listeners. Yeah. Cool. That'd be great. Awesome. So in addition to picking up the. Over at Mike, Dillard dot com, if they want to reach out to you Patrick directly where can I go probably the best website right now is is the book website. So it's heads or tails, I win dot com. And there's you know, there's a you can reach out reach out to us make a request for consultation. You can there's a study guide on there that has a number of videos into to'real 's in addition to what what's on your website. Mike awesome. Awesome. Awesome. Patrick always great to chat with you. Brother. Thank you for doing. What you do you help a lot of people out and guys if you need help when it comes to accumulating wealth. This is one of my favorite strategies in the world. I would definitely go watch the class that I did with Patrick on this give him a buzz and see if it's a good fit for you. Thank you for joining us, brother. It's always good to hear from you. And this has been awesome conversation. Mike is my pleasure. Thank you. Absolutely guys gals. If you enjoy this episode of got to ask from you, please share it with those that you think would benefit from it as. Well, I've got a bunch of entrepreneurs that are sitting on a bunch of cash because they're very risk averse and they're losing money because sitting in a savings account. This would be a perfect fit for that that type of individual and second pull up tunes. Whatever leave us a five star review. Write something nice about Patrick about the show if you get value from this. We don't do any ads. We don't advertise the podcast. That's the only way that we grow and your comments really mean a lot I read every single one of those. So I do appreciate it at. Thanks for listen. We'll see next week.